37 amp 38 Exceptions Christopher Houston Lorenzo Garza AUGUST 2017 1 Drilling Permits Statewide Rule 37 amp 38 Exceptions Presentation Overview Terminology associated with exception applications ID: 748992
Download Presentation The PPT/PDF document "Drilling Permits Statewide Rule" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Drilling Permits Statewide Rule
37 & 38 ExceptionsChristopher HoustonLorenzo GarzaAUGUST 2017
1Slide2
Drilling Permits Statewide Rule 37 & 38 Exceptions
Presentation OverviewTerminology associated with exception applicationsStatewide Rule Exception Triggers Notification parametersPlat requirements
Different ways to resolve SWR exceptions
2Slide3
Drilling Permits Statewide Rule 37 & 38 Exceptions
3Slide4
Drilling Permits Statewide Rule 37 & 38 Exceptions
4Slide5
Drilling Permits Statewide Rule 37 & 38 Exceptions
SWR 37 & 38 terminology you should know.
OFFSET
WAIVER-
Basic information required
Information on waiver must match permit application
We will not accept waivers older than 6 months
5Slide6
Drilling Permits Statewide Rule 37 & 38 Exceptions
6Slide7
Drilling Permits Statewide Rule 37 & 38 Exceptions
SWR 37 & 38 terminology you should know
SERVICE LIST
TOLERANCE ACRES
UNAFFECTED
Lease spacing
Between well
Density
7Slide8
Drilling Permits Statewide Rule 37 & 38 Exceptions
SWR 37 LEASE LINE EXCEPTIONSWhat triggers a SWR 37 lease line exception?Vertical wellDirectional wellHorizontal wellSWR 86 field
Field with special horizontal rules
8Slide9
Drilling Permits Statewide Rule 37 & 38 Exceptions
Vertical Well in Productive Zone9Slide10
Drilling Permits Statewide Rule 37 & 38 Exceptions
Directional Well in Productive Zone
10Slide11
Drilling Permits Statewide Rule 37 & 38 Exception
Horizontal Well Productive Zone
13Slide12
Drilling Permits Statewide Rule 37 & 38 Exceptions
12Slide13
Drilling Permits Statewide Rule 37 & 38 Exceptions
13Slide14
Drilling Permits Statewide Rule 37 & 38 Exceptions
14Slide15
Drilling Permits Statewide Rule 37 & 38 Exceptions
Plat requirements For Lease Line SWR 37 exception
The plat must clearly show all offset interests within whichever is
greatest
between the
lease line spacing or half of the between well spacing
for the field in question.
Vertical well – from location of the well
Directional well – from the BHL of the well
Horizontal well- portion of well within the correlative interval
15Slide16
Drilling Permits Statewide Rule 37 & 38 Exceptions
Plat requirements For Lease Line SWR 37 exception Example: LL = 467’ BW= 1200’ so half of BW = 600’ this value is greater than 467’ so offsets within 600’ of well location must be shown on plat.All plats used for SWR exceptions must be certified with a surveyors stamp or signature from operator representative.
16Slide17
Drilling Permits Statewide Rule 37 & 38 Exceptions
Plat requirements For Lease Line SWR 37 exception
Special horizontal field rules- dual lease line provisions
The plat must clearly show all offset interests within the prescribed heel and toe distances and within the minimum lease line distance along the well bore path
17Slide18
Drilling Permits Statewide Rule 37 & 38 Exceptions
18Slide19
Drilling Permits Statewide Rule 37 & 38 Exceptions
RESOLUTIONS TO SWR 37 EXCEPTIONS
LEASE LINE:
You are your own offset.
You have waivers from affected offsets.
Provide service list for 21-day notification of affected offsets.
If unable to locate affected parties request to set up for publication of notice for 4 consecutive weeks
19Slide20
Drilling Permits Statewide Rule 37 & 38 Exceptions
SWR 37 SPACING EXCEPTIONSWhat triggers a SWR 37 Between Well exception?
20Slide21
Drilling Permits Statewide Rule 37 & 38 Exceptions
SWR 38 WELL DENSITY EXCEPTIONSWhat triggers a SWR 38 density exception?
21Slide22
Drilling Permits Statewide Rule 37 & 38 Exceptions
Plat requirements for SWR 37 BW and 38 exceptions
all offset interests must be clearly labeled on plat around the entire lease or pooled unit.
Could include
Offset operators or
Lessee or
Unleased mineral owner.
Verify that your field does not have special notification requirements
22Slide23
Drilling Permits Statewide Rule 37 & 38 Exceptions
23Slide24
Drilling Permits Statewide Rule 37 & 38 Exceptions
24Slide25
Drilling Permits Statewide Rule 37 & 38 Exceptions
25Slide26
Drilling Permits Statewide Rule 37 & 38 Exceptions
26Slide27
Drilling Permits Statewide Rule 37 & 38 Exceptions
RESOLUTIONS TO SWR 37 and 38 EXCEPTIONS
BETWEEN WELL:
You are your own offset.
You have waivers from affected offsets.
Provide service list for 21-day notification of affected offsets.
If unable to locate affected parties request to set up for publication of notice for 4 consecutive weeks
27Slide28
Drilling Permits Statewide Rule 37 & 38 Exceptions
RESOLUTIONS TO SWR 37 and 38 EXCEPTIONS
BETWEEN WELL: CONTINUED
Unaffected status
Offset resides in another state or country
For larger leases/pooled units that affected offsets are more than 1 mile away from well location.
Provide offset plat that shows entire lease
Show 1 mile radius around well
Letter requesting Unaffected status for those offsets more than 1 mile away including drainage calculations
28Slide29
Drilling Permits Statewide Rule 37 & 38 Exceptions
RESOLUTIONS TO SWR 38 EXCEPTIONS:
Continued
Once notification has occurred with no protests then processing of application continues.
If no data is required then permit is administratively approved.
If data is required then RRC technical examiner will review the information you have provided.
29Slide30
Drilling Permits Statewide Rule 37 & 38 Exceptions
30Slide31
Drilling Permits Statewide Rule 37 & 38 Exceptions
31Slide32
Drilling Permits Statewide Rule 37 & 38 Exceptions
39Slide33
Drilling Permits Statewide Rule 37 & 38 Exceptions
HOW DOES THE W-1A WORKIf the date that the tract took its size and shape is prior to the field rules going into effect a permit can be granted on sub-standard acreage.If this is the last well on the lease and you have the specified tolerance acreage available and the tract took its size and shape prior to the field rules going into effect then a permit can be granted on sub-standard acreage.
33Slide34
Drilling Permits Statewide Rule 37 & 38 Exceptions
Important things to remember:Make sure you file a certified plat that clearly shows the affected offsets.In fields with special horizontal rules make sure that you manually flag your application for a SWR exception.Lastly call us if you have any questions before you file the application.
34Slide35
Drilling Permits Statewide Rule 37 & 38 Exceptions
SWR 37/38 and Partially Leased InterestsHow a SWR 37 exception is triggeredUsing NPZ’sStopping a SWR 37 from being triggeredControlling who gets noticed35Slide36
Drilling Permits Statewide Rule 37 & 38 Exceptions
36Slide37
Drilling Permits Statewide Rule 37 & 38 Exceptions
37Slide38
Drilling Permits Statewide Rule 37 & 38 Exceptions
38Slide39
Drilling Permits Statewide Rule 37 & 38 Exceptions
39Slide40
Drilling Permits Statewide Rule 37 & 38 Exceptions
For more questions concerning SWR exceptions contact
Chris Houston
Or
Lorenzo Garza
512-463-6751
40